Hydro to cut workforce by about 100

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By JASON THOMAS

HYDRO Tasmania's staff will shrink by 9 per cent - between 90 and 100 workers - as it faces challenges like the carbon tax repeal and weakening demand on the national energy market.

HYDRO Tasmania's staff will shrink by 9 per cent - between 90 and 100 workers - as it faces challenges like the carbon tax repeal and weakening demand on the national energy market.

The carbon tax has benefited the state-owned clean energy provider but the tax will be repealed when the new Senate sits in July.

Demand on the national energy market, which Hydro Tasmania exports to via the Basslink cable, has declined for years.

The business had already requested expressions of interest from people for voluntary redundancies and a number of people had left as a result, Hydro's chief executive Steve Davy said.

These job cuts would be complete in the next two months, Hydro Tasmania said.

It was expected the remaining positions would go through a combination of voluntary redundancies, natural attrition and compulsory redundancies, Mr Davy said.

State Minister for Energy Matthew Groom said the job losses were regrettable, but gave no apology for supporting the scrapping of the carbon tax.

"In the two years since the carbon tax was introduced, Tasmanian households and small and medium-sized businesses have paid out around $100 million in higher electricity prices, all on carbon-free energy," Mr Groom said.

"We do not support that when the cost of living is already high thanks to Labor and the Greens.

"Hydro Tasmania has been around for 100 years. It was profitable before the carbon tax was introduced in 2012, it will be profitable after the tax is repealed."

Mr Groom also revealed his wife was one affected by the job cuts. She has been offered and accepted full redundancy from Hydro Tasmania.

Meanwhile, Labor leader Bryan Green said the job losses were "a sad indictment on the policies of the Liberal governments".

"The blame for these job losses lies firmly at the feet of Tony Abbott who has attacked the carbon price and the renewable energy scheme," Mr Green said

"Will Hodgman has callously chosen to side with his Liberal mates in Canberra over the futures of 100 Tasmanian families."

Demand on the national energy market peaked in 2008-09, after Hydro Tasmania entered the national grid in 2005-06.